Current Status: Active PolicyStat ID: Financial Assistance Policy

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1 Current Status: Active PolicyStat ID: Effective: 07/2017 Approved: 04/2018 Last Revised: 04/2018 Expires: 04/2019 Author: Policy Area: Reference: Betty Jenkins: Administrative Assistant Rev. Cycle Financial Assistance Policy STATEMENT OF PURPOSE: This policy establishes Adena Health System's (AHS) guidelines for free or discounted services based on specific income criteria as defined by the Federal Poverty Guidelines. Adena's Chief Financial Officer is administratively responsible for this Policy along with the Finance Committee of the Board of Trustees which maintains oversight. SCOPE: This policy applies uniformly to both inpatient and outpatient services provided by the following AHS entities: Adena Regional Medical Center (ARMC) Adena Greenfield Medical Center (AGMC) Adena Pike Medical Center (APMC) Adena Medical Group (AMG) POLICY/PROGRAM DESCRIPTION: The core of AHS' mission is to serve the healthcare needs of all people in our community 24 hours a day, 7 days a week, regardless of their ability to pay. AHS provides care based on the following principles: Treat all patients fairly, with dignity, respect and compassion. Serve the emergency healthcare needs of everyone. Assist patients who cannot pay for part or all of their care. Balance needed financial assistance for some patients with broader fiscal responsibilities in order to maintain hospital services. AHS provides free or reduced care under Hospital Care Assurance Program (HCAP), Disability Assistance Program (DAP), and Charity Care Program (CCP). HCAP is the Ohio Department of Medicaid's (ODM) mechanism for meeting the federal requirement to provide additional payments to hospitals that provide a disproportionate share of uncompensated services to the indigent and uninsured. DAP is a program under the state of Ohio that provides a safety net for disabled individuals who do not meet all of the eligibility requirements necessary to receive help from other federal and state benefit programs. AHS provides additional charity through its own CCP based on Federal Poverty Income Guidelines as outlined in this policy. PROCEDURE 1. HCAP/DAP: Applies to basic, medically necessary hospital inpatient, outpatient, and emergency department services per the Ohio Administrative Code. a. Eligibility Requirements 1. At the time of service, the patient is living in the State of Ohio and is not receiving any public assistance in Page 1 of 5

2 Ohio or any other state. 2. At the time of service, the patient is: a. a current recipient of DAP or its successor program; or b. the patient' s individual or family, if applicable, income is at or below the current Federal Poverty Income Guidelines 1. Based on patient, patient's spouse, and all of the patient's children under the age of 18 who are living in the household. To view the Federal Income Poverty Guidelines please see Appendix B, as amended on an annual basis. 2. Income: Total salaries, wages, and cash receipts before taxes. Calculated by using the lesser of: 1) multiplying the person or family's income by four, as applicable, for the three months preceding the date of service; 2) using the person or family's income for the twelve months preceding the date of service. 3. At the time of service, documentation representing proof of income is not a requirement. Patients may attest to their income amount by completing the Financial Assistance Application and signing and dating the form. 4. AHS must receive a completed application prior to determination of eligibility. 5. Applications will be accepted for up to three years from the date of the first follow-up notice for payment sent to a patient. a. Effectiveness of Eligibility Determination 1. DAP: Eligibility only effective for one month for both inpatient and outpatient services and will need to be verified on a monthly basis. a. AHS financial counselors will print the DAP application and assist patients with completing the form. b. Outpatient Services. Eligibility determination is effective for 90 calendar days from the initial service date. Effective dates for outpatient eligibility are to be documented on the patient's account, under system notes. c. Inpatient Services. Eligibility determination will be performed separately for each admission, unless the patient is readmitted within 45 calendar days of discharge for the same underlying condition. 2. HCAP: a. Outpatient Services. Eligibility determination is effective for 90 calendar days from the initial service date. Effective dates for outpatient eligibility are to be documented on the patient's account, under system notes. b. Inpatient Services. Eligibility determination will be performed separately for each admission, unless the patient is readmitted within 45 calendar days of discharge for the same underlying condition. 2. CCP: Service must be a medically necessary service, as defined by the Ohio Administrative Code. The discounts are applied per the Charity Discount Worksheet (see Appendix B). a. Eligibility Requirements 1. At the time of service, the patient resides, with the intent to remain, in one of the following twelve Ohio counties: Adams, Athens, Fayette, Gallia, Highland, Hocking, Jackson, Pickaway, Pike, Ross, Scioto, or Vinton, and is not receiving any public assistance in any other state. Page 2 of 5

3 2. At the time of service: a. The patient' s individual or family, if applicable, income is at or below 200% of the current Federal Poverty Income Guidelines for a 100% CCP discount. See definitions of family and income above for further guidance on how to calculate. b. The patient's individual or family, if applicable, income is 201%-400% of the current Federal Poverty Income Guidelines for a 60% CCP discount. See definitions of family and income above for further guidance on how to calculate. c. Documentation representing proof of income is not a requirement. Patients may attest to their income amount by completing the Financial Assistance Application and signing and dating the form. b. Effectiveness of Eligibility Determination 1. Outpatient Services. Eligibility determination is effective for 90-calendar days from the initial service date, during which time a new eligibility determination need not be completed. Effective dates for outpatient eligibility are to be documented on account, under system notes. 2. Inpatient Services. Eligibility determination will be performed separately for each admission, unless the patient is readmitted within 45 calendar days of discharge for the same underlying condition. 1. Patients without health insurance whose income is above 400% of the Federal Poverty Guidelines may also qualify for a service fee discount from their gross charges, but do not qualify as "eligible" patients under this Financial Assistance Policy. Note: Patients with incomes less than 100% of Federal Poverty Income Guidelines are first considered under HCAP. UNINSURED PATIENTS: CHARGE LIMITATIONS 1. Financial Assistance Policy eligible individuals may not be charged more than Average Generally Billed (AGB) for medically necessary care. a. AGB is based on the current charge schedule for all AHS providers and facilities. The charges are adjusted annually at the beginning of the calendar year based on a variety of factors including its costs, market conditions, government regulations and insurance contract requirements. Once the charges are calculated, the current year AGB is calculated by taking the average payment rates from Medicare and Commercial Insurances paid to AHS during the prior year (Allowable amounts divided by gross billings). Note: Adena does not offer discounts to insurance deductibles, co-payments or co-insurance because of strict payor contracting guidelines. Note: This discount is not applicable when patient services are covered under Workers Compensation, auto insurance motor vehicle accidents, and third party injuries. NOTIFICATION OF FINANCIAL ASSISTANCE Signs are posted at each patient registration location stating our compliance with the State of Ohio's HCAP requirements. Additionally, the signage contains reference to the organization's CCP. Information and materials are available at each registration location, the emergency rooms and all admission areas. Interpretive services can be arranged if the patient/guarantor does not speak English. Also, all billing statements include a plain language summary and information on how to obtain a financial assistance application. Page 3 of 5

4 Required patient documentation to demonstrate eligibility for financial assistance may include IRS W-2 forms and/or 1099 forms, paycheck stubs, a valid government issued identification, and/or documentation of sources of other income, including disability payments. Other than at the time of service, required patient documentation submission is a requirement as proof of eligibility. However, Adena may accept other evidence of eligibility, or Adena may allow the applicant to attest to their eligibility. Financial assistance may be denied for non-compliance with requests for required patient documentation. Application Process for Financial Assistance: Patients with a financial need are encouraged to call Adena's customer service line at (740) , or the Financial Aid Department at FinancialCounselingTeam@adena.org. An Adena representative will guide you through the financial assistance application process, and all inquiries are confidential. Individuals may request a Financial Aid Policy (FAP), a plain language summary, or financial aid application via mail from Patient Business Services, by calling (740) Hours of operation are 8am-4:30pm M-F; location is 110 Vaughn Lane, Chillicothe, Ohio Patients can also go to Adena Regional Medical Center, 272 Hospital Rd., Suite 240. Applicants may also visit Adena's website at NON-PAYMENT ACTIONS: In the event of non-payment of services (discounted or full-rate) Adena may take extraordinary actions to pursue collections, including but not limited to: referring the account to outside collections agencies, adverse credit reporting, and/or legal action, pursuant to AHS's Billing and Collections Policy. A free copy of the Billing and Collections Policy is available by request from Patient Business Services, by calling (740) Hours of operation are 8am-4:30pm M-F; location is 110 Vaughn Lane, Chillicothe, Ohio Patients can also go to Adena Regional Medical Center, 272 Hospital Rd., Suite 240 or visit Adena's website at Appendix A Covered and Non-Covered Providers Practice Groups (Covered Providers) 1. Adena Bone & Joint, Adena OB/GYN, Adena ENT & Allergy, Adena Audiology, Adena Cardiothoracic & Vascular, Adena Pre-Admission Testing, Adena Surgical, Adena Urology, Adena Cardiology, Adena Pulmonology, Critical Care & Sleep Associates, Adena Counseling Center, Adena Dermatology, Adena Gastroenterology, Adena Kidney Specialists, Adena Infectious Disease, Adena Rheumatology, Adena Endocrinology & Diabetes Care, Adena Radiation Oncology, Adena Cancer Center and Infusion Clinic, Adena Occupational Health, Adena Internal Medicine, Adena Pediatrics, Adena Chillicothe Physicians, Adena Medicine of Chillicothe, Adena Pickaway Ross Physicians, Adena Urgent Care-Western, Adena Medicine-Residency Clinic, Adena Medicine- Circleville, Adena Medicine- Greenfield, Adena Medicine- Washington Courthouse, Adena Medicine- Hillsboro, Adena Medicine- Waverly, Adena Medicine- Piketon, Adena Urgent Care- Waverly, Adena Medicine-Jackson, Adena Medicine-Oak Hill, Adena Medicine-Wellston, Adena Anesthesia, Adena Palliative Care. Practice Groups (Non-Covered Providers) 1. Adena Wal-Mart Clinic - Chillicothe 2. Apogee Physicians (hospitalist group) 3. CORPath Page 4 of 5

5 4. Columbus Radiology/Radiology Partners 5. Schumacher Group 6. Team Health Appendix B Charity Discount Worksheet HCAP/CCP Scale Based on 2018 FEDERAL POVERTY GUIDELINES Members HCAP ELIGIBLE Full Charity Partial Charity <100% FPL 101%200% FPL 60% Write Off % FPL 1 $0 $12,140 $12,141 $24,280 $24,281 $48,560 2 $0 $16,460 $16,461 $32,920 $32,921 $65,840 3 $0 $20,780 $20,781 $41,560 $41,561 $83,120 4 $0 $25,100 25,101 $50,200 $50,201 $100,400 5 $0 $29,420 $29,421 $58,840 $58,841 $117,680 6 $0 $33,740 $33,741 $67,480 $67,481 $134,960 7 $0 $38,060 $38,061 $76,120 $76,121 $152,240 8 $0 $42,380 $42,381 $84,760 $84,761 $169,520 *For family units more than 8 persons, add $4, for each additional person All revision dates: 04/2018, 04/2018, 08/2017, 07/2017, 07/2017 Attachments: FAP Final 2_20_2018 (003).docx Approval Signatures Step Description Approver Date Stephen Ross: Senior Director Revenue Cycle 04/2018 Page 5 of 5

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